1 / 24

THOMAS L. WHEELEN J. DAVID HUNGER

CHAPTER 6 Strategy Formulation: Situation Analysis & Business Strategy. THOMAS L. WHEELEN J. DAVID HUNGER. Situational Analysis. Strategy formulation -- Strategic planning or long-range planning Develops mission, objectives, strategies, policies. Situational Analysis.

kim
Download Presentation

THOMAS L. WHEELEN J. DAVID HUNGER

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CHAPTER 6Strategy Formulation: Situation Analysis & Business Strategy THOMAS L. WHEELEN J. DAVID HUNGER

  2. Situational Analysis • Strategy formulation -- • Strategic planning or long-range planning • Develops mission, objectives, strategies, policies

  3. Situational Analysis --process of finding a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses

  4. IFAS – Maytag as Example

  5. EFAS – Maytag as Example

  6. SFAS Matrix

  7. Situational Analysis • Niche -- • Need in the marketplace that is currently unsatisfied

  8. Situational Analysis • Corporate Goal -- • Find propitious niche • Strategic window

  9. Situational Analysis • SWOT -- • Internal • Strengths/Weaknesses • External • Opportunities/Threats

  10. TOWS Matrix

  11. Business Strategy Focuses on improving competitive position of company’s products or services within the specific industry or market segment

  12. Porter’s Competitive Strategies • Generic Competitive Strategies -- • Lower Cost strategy • Greater efficiencies than competitors • Differentiation strategy • Unique/superior value, quality, features, service

  13. Porter’s Competitive Strategies • Competitive Advantage -- • Determined by Competitive Scope • Breadth of the target market

  14. Porter’s Competitive Strategies

  15. Porter’s Competitive Strategies • Cost Leadership -- • Low-cost competitive strategy • Broad mass market • Efficient-scale facilities • Cost reductions • Cost minimization

  16. Porter’s Competitive Strategies • Differentiation – • Broad mass market • Unique product/service • Premiums charged • Less price sensitivity

  17. Porter’s Competitive Strategies • Cost Focus – • Low-cost competitive strategy • Focus on market segment • Niche focused • Cost advantage in market segment

  18. Porter’s Competitive Strategies • Differentiation Focus – • Specific group or geographic market focus • Differentiation in target market • Special needs of narrow target market

  19. Porter’s Competitive Strategies • Stuck in the middle – • No competitive advantage • Below-average performance

  20. Competitive Strategies Best Cost Provider – A company has an ability to incorporate attractive or upscale attributes at a lower cost than rivals.

  21. Competitive Tactics • Timing Tactics -- • First mover • Late movers

  22. Competitive Tactics • Market Location Tactics -- • Frontal Assault • Flanking Maneuver • Bypass Attack • Encirclement • Guerrilla Warfare

  23. Competitive Tactics • Defensive Tactics -- • Raise structural barriers • Increase expected retaliation • Lower the inducement for attack

  24. Cooperative Strategies • Collusion • Strategic Alliances • Mutual service consortia • Joint ventures • Licensing arrangements • Value-chain partnerships

More Related